Bovis Homes sees 'significant' step up in half-year profit amid uptick in completions
StockMarketWire.com - Home builder Bovis Homes said it expects to deliver a 'significant' step up in profitability for the half year as first-half completions were slightly ahead compared to the same period a year ago.
For the six month period ended 30 June 2018, the group delivered a total of 1,580 completions in the half year, which was better than expected, and 4% ahead of the prior year. The private average selling price in the period was about £335,000, up from £334,700 the same period a year ago.
The total average selling price, however, fell to £261,000 for the period from £277,400, as a higher proportion of affordable content in the mix weighed.
The group's sales rate rose 8% to 0.52 from 0.48 net private reservations per site per week.
'We are very pleased with the Group's first half performance and are in a strong position to deliver upon our expectations for the full year,' Bovis homes said.
In the first half the home builder gained planning consent on a total of 678 plots, and entered into five new options.
The home builder said 98% of units for 2019 had been secured of which 92% had detailed planning in place.
'We expect to deliver a significant step up in profitability for the half year as we start to see the financial benefits from the strategic direction, changes implemented, and specific margin initiatives launched over the past 18 months. In addition, we have delivered another disciplined and orderly period end with our customer satisfaction score continuing to trend at well above 80%,' said Greg Fitzgerald, Group CEO. At 8:09am: (LON:BVS) Bovis Homes Group PLC share price was +15p at 1137p
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